net promoter score

Definition

A metric measuring customer loyalty by asking how likely someone is to recommend your company on a 0-10 scale. Promoters (9-10) minus detractors (0-6) equals your score, which somehow ignores the passives (7-8) entirely.

Example Usage

Our NPS is 23, which is either excellent or terrible depending on which industry benchmark we cherry-pick for the board presentation.

Origin

Created by Bain & Company consultant Fred Reichheld and introduced in a 2003 Harvard Business Review article

Fun Fact

Despite its massive popularity, NPS is controversial in research circles for its oversimplification and the arbitrary mathematical treatment of the 7-8 'passive' group.

Source: Customer experience and satisfaction measurement

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